As expected, it was another blockbuster year online for computer hardware (+126%) and consumer electronics (+109%). Books also did well (+66%), but the seemingly insatiable appetite for toys and video games took a hit this year (-9%).

What we are waiting to see is how much this growing confidence in completing conversion online will influence B2B behavior in the coming year. While we recognize that there are key differences in B2B versus B2C buyer decision-making processes (e.g. committee buying, need for "demonstrations," traditionally longer (constipated) buying cycles, etc.), we cannot help but believe that growing confidence on the part of online (B2C) buyers will have some "crossover" impact.

A final note - with this being our final post for 2005, we'd like to wish all our loyal readers a Happy (and safe) New Year! Thanks for your interest, comments and support.

With millions of portable devices now in user hands, and, in the words of Erin McKean, editor in chief of the New Oxford American Dictionary, "only so much music you can listen to," it's no surprise that "podcast" has risen to the top of the lexicographers' heap this year. According to Frank Barnako (MarketWatch),

"Editors at the New Oxford American Dictionary have selected "podcast" as their word of the year.

The definition is "a digital recording of a radio broadcast or similar program, made available on the Internet for downloading to a personal-audio player."

As a marketing opportunity, time-shifted audio has come of age. My spouse, Amanda, is out at SES this week, speaking the gospel of RSS and Podcasting. And people are listening, and taking action. No one can afford to remain on the sidelines.

Congratulations to Dave Winer, Adam Curry (see - evenhanded - both sides of the debate) and all the others who saw it first, and helped birth this jolly private-time-and-space invader. Who cares that we'll never hear the birds chirp again ;-)

In recent months, we've been closely following the Army's hard-fought battle on the home front - recruiting new soldiers to provide relief for those currently deployed. It's interesting to contrast the behaviors of those already committed to the fight with those here at home. According to Steven Rothberg's December 1 article on the collegerecruiter.com blog, entitled Army Exceeds Reenlistment Goals:

" . . . reenlistment rates (for the past 3 years) have been at least six percent higher than the Army's goals."

According to Rothberg,

"The Army attributes these strong rates to unprecedented cash bonuses and a renewed sense of purpose in fighting terrorism."

He further notes that some of these bonuses, for those currently in Iraq or Afghanistan, are tax-free.

However, the Army is still in trouble when it comes to meeting overall staffing goals. Deeper in the article, Rothberg notes:

"The Army still is two-thirds short of its recruiting goals for the year, which translates into a projected 12,000-troop shortfall. In addition, the re-enlistments won't address some key personnel vacancies, such as military police and bomb-disposal experts."

Given these two contrary trends (reenlistment up, recruiting new folks down), what lessons are to be learned? First, I think we should seriously consider what's motivating the re-enlistments:

Intrinsic rewards and recognition ("renewed sense of purpose in fighting terrorism" or, perhaps more significantly, a sense of obligation to one's unit and fellow soldiers) OR

Extrinsic rewards - the tax-free bonuses and other remuneration.

Like Rothberg, I've always been impressed with the quality of the people who are involved in Army (and for that matter all Armed Services) recruiting. My own experience with the people involved at the strategic level of this endeavor during my years in Big 5 consulting leads me to have a great deal of respect for their analytic rigor and innovative approaches to this daunting task. I would challenge this group to continue doing research on motivation and mindset differences that lead to action in both market segments, that is, those targeted for recruiting and those already in the service.

Bottom line - "preaching to the choir," no matter how well it's done, is not going to fill all the open positions that must be filled to maintain an effective fighting force. New messages, compelling stories and a mission that makes sense to a broad audience are required to bring in new recruits. For the sake of our country, and those already serving, I wish our recruiting strategists the best.

Wish We'd Said It First

Things fall apart; the centre cannot hold; Mere anarchy is loosed upon the world, The blood-dimmed tide is loosed, and everywhere The ceremony of innocence is drowned; The best lack all conviction, while the worst Are full of passionate intensity.